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Burka [1]
4 years ago
9

Which of the following statements is CORRECT? a. During a period when a company is undergoing a change such as increasing its us

e of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future. b. If a company with a high beta merges with a low-beta company, the best estimate of the new merged company's beta is 1.0. c. If a newly issued stock does not have a past history that can be used for calculating beta, then we should always estimate that its beta will turn out to be 1.0. This is especially true if the company finances with more debt than the average firm. d. Logically, it is easier to estimate the betas associated with capital budgeting projects than the betas associated with stocks, especially if the projects are closely associated with research and development activities. e. The beta of an "average stock," which is also "the market beta," can change over time, sometimes drastically.
Business
1 answer:
hram777 [196]4 years ago
7 0

Answer:A. During a period when a company is undergoing a change such as increasing its use of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future.

Explanation: Leverage is a term used in Financial investment to mean the use of various borrowing options by an organisation in order to improve its potential to make profit or its potential to be Competitive.

Risky projects are projects known to high a high chances of loss,this type of projects can lead to severe consequence for business Organisations.

the beta of an investment is a measure of the risk which is caused by the exposure of an investment to general market changes as opposed to internal factors that can have severe negative impact on an investment.

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2. _____ segmentation divides consumers into groups according to their usage, loyalties, or buying responses to a product. A. Be
sladkih [1.3K]

Answer:

D. Behavioristic segmentation

Explanation:

Behaviouristic segmentation is the way businesses group customers based on buying behaviour. They are grouped according to usage frequency, brand loyalty, benefits, and buying patterns.

Behavioural segmentation makes it easier to target group of similar consumers and better meet their similar needs.

This also gives rise to customisation of products and services to meet unique needs of clients.

4 0
3 years ago
Read 2 more answers
WACC.  
postnew [5]

Answer:

6.57%

Explanation:

The WACC formula is really easy you just have to calculate the weights of the debt or equity whatever is given in the question and then multiply it by the percentage of borrowing given. The total borrowing in this question is 12000(4911+4305+2784).

WACC for this question will be calculated as:

=> (4911/12000)*0.04 + (4305/12000)*0.06 + (2784/12000)*0.12

=> 0.0657

=> 6.57%

Hope this helps,

Goodluck buddy

8 0
3 years ago
George recently received a great stock tip from his friend, Mason. George didn’t have any cash on hand to invest, so he decided
svetoff [14.1K]

Answer:

The amount may he deduct as interest in 2015 is $960.

Explanation:

As per the provision of IRS (reference to 550), any amount of interest due towards money borrowed for investment purposes (also known as investment interest) can be claimed as a deduction. Therefore, it becomes important to allocate the total amount of loan/borrowing between the amount utilized for personal/business purposes and investment purposes.

In the given case, George has borrowed $20,000, out of which $16,000 has been used for investment purposes, that is, 80% (16,000/20,000*100%), while the remaining 20% (4,000/20,000*100) is used for personal purposes (purchase of four-wheel recreation vehicle).   Out of the total interest of $1,200 (20,000*8%*9/12) due on the amount borrowed, $960 (1,200*80%) can be claimed as deduction (in the form of investment interest). The remaining $240 cannot be claimed as deduction.

Therefore, The amount may he deduct as interest in 2015 is $960.

5 0
3 years ago
• Broussard Skateboard’s sales are expected to increase by 15% from $8 million in 2016 to $9.2 million in 2017. Its assets total
Vinil7 [7]

Answer:

AFN $ 2,169

Explanation:

Equation        

5,000 x 0,15 = 0,75

-1,400 x -1,25 = 1,75

-9,200 x 0,06 x 0,60 = -0,3312  

 AFN = $2,169

A0 (Current Level of Assets)      =         5,000

L0 ( Current Level of Liabilities) =  1,400

Var S (Percentage increase in Sales) =   0,15  

S1 (New level of Sales) =  9,200

PM (Profit Margin)  =  0,06  

b (Retention Rate)  =  0,60  

AFN  (Additional Funds Needed)  =  $ 2,169

   

7 0
4 years ago
According to business news daily, job stress is estimated to cost american companies more than _____ a year in health costs, abs
netineya [11]

According to business news daily, job stress is estimated to cost American companies more than<u> $300 billion</u> a year in health costs, absenteeism, and poor performance.

Stress is a feeling of emotional or physical tension. It can come from any event or thought that irritates you, makes you angry, or makes you nervous. Stress is the body's response to challenges and demands. In short bursts, stress can be positive. B. When they help you avoid danger or meet deadlines.

Stress can be defined as any kind of change that causes physical, emotional, or psychological distress. Stress is the body's response to anything that requires attention or action. Everyone is stressed to a greater or lesser extent. However, the way you respond to stress has a huge impact on your overall health.

Learn more about Stress here: brainly.com/question/11819849

#SPJ4

4 0
2 years ago
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